Netflix (NFLX) Adds 7 Million Subscribers to Crush Q3 Estimates
Netflix NFLX saw its stock price soar in after-hours trading after the streaming TV giant posted third-quarter subscriber growth that blew away its own projections by roughly 2 million. Netflix closed the quarter with 137.1 million subscribers worldwide, driven by impressive international and domestic growth.
Subscriber Growth
Netflix, which fell short of its own subscriber projections by 1 million last quarter, added a total of 7 million subscribers during the third quarter. This blew away the firm’s estimate of 5 million and set a new Q3 record.
Netflix added 5.87 million new international subscribers. This destroyed its 4.35 million estimate and topped our 4.4 million NFM estimate. Maybe more importantly, the streaming TV giant added 1.09 million new subscribers in the U.S., which crushed its 650,000 estimate. Investors should be very pleased to see that Netflix was able to add so many more new users in the U.S., especially amid competition from Amazon AMZN and increased market saturation.
The streaming firm ended the quarter with 137.1 million subscribers worldwide, which topped its 135.14 million estimate and marked a roughly 25% jump from the third-quarter of 2017 when the firm boasted 109.25 million subscribers. Investors should also note that Netflix closed the quarter with 130.42 paid subscribers, up from 104.02 million in the previous-year quarter.
Looking ahead, Netflix expects to add 7.6 million paid users and 9.4 million total subscribers during the fourth quarter. These estimates would bring the streaming TV powerhouse’s total paid members to 138.02 million and its total subscribers to a whopping 146.5 million.
On top of subscriber growth, Netflix saw its Q3 revenues jump 34% to hit $3.99 billion. Yet, Wall Street will likely continue to focus on NFLX's subscriber growth going forward with streaming platforms from Apple AAPL, Disney DIS, and AT&T T all due out over the next few years.
Netflix’s subscriber growth also helps highlight the strength of the company’s growing library of original content, which will prove key as long as it is in business.
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